Project Information

Project name: CBO’s INITIATIVES FUND

Theme: “participate on your part, raise our income” (PYPRI)

Introduction.

Both the poverty and Human Development report in 2002, 2003, 2005 and 2010 assessed the trend of poverty in 1990s based on the Household Budget survey ( HBS ) of 1991/92 and 2001/02( RWG 2002, 2003). These surveys indicate that about 36 percent of Tanzanians were living below the poverty line in 2000/01. Were Lindi was last to 10 bottoms, the project will aim provide positive social and economic benefits for OVGA and LISAWE as it will reduce the costs associated with productivity and prolonged periods of project sustainability. According to the National survey report in 2010 provide the answer to ILO Director Daft of June 2006, that it is very hard southern part of Africa especially southern part of Tanzania to achieve Main goals of 2015 MDGs, the situation in Lindi concerning the number of Youth and Women living in remote areas are the most disadvantaged community in most Tanzania Region. Usually in the remote areas people access to basic development services i.e. Financial services, good roads, schools etc. though many development organizations and institutions get funds for the purpose of supporting poor people in the rural areas, in actual fact, poor people in rural do not benefit at all. Very few people have managed to benefit. Other development institutions claim that, they cannot work in the remote areas because it is risky, dangerous and expensive.

Through participatory and partnership approach (OVGA, LISAWE and other development partners) aim to increase awareness in Entrepreneurship to reach and serve more than 45 CBOs with more than 700 people in 3 rural districts of Lindi Region. This information is aimed at facilitating experience sharing, and building linkages and network for improving program me impact.

PYPRI program is a continuation of Domestic Development services (DDS) and partners in Development program (PDP). In most case it has been very difficult for OVGA to go and work in remote areas

                                                                                                     

EXCUTIVE SUMARRY.

In most cases it has been very difficult for Institution to go and work in remote areas because of the so-called High Operating Costs and High Investment Risk.

PYPRI belies it is more expensive and risky to leave needy people unsaved while you have the resources, “it is a Great sin to costs and High where a poor man life is at stake”.

 

In reaching disadvantaged poor people in the remote area, PYPRI is now saving 20 wards in urban and rural in 2 districts (Lind urban and rural). Currently more than 230 people who managed to initiate their own small credit through esteemed capacity building benefit from

PYPRI project.

The average distance for PYPRI client is 15-50 km from the district centre.

Through PYPRI second phase, rural people will have managed to receive skills’ training in project management, project planning, record keeping, credit management, Group leadership, Environment etc. project have to manage people establishing their own small credit systems and ready to benefit credit facilities. Project clients will work on strategic to establish CBO’s market network (system) for the purpose of lobbying for market of their products.

 

A BRIEF PROJECT STRATEGIC PLAN 2014 - 2019

NO	GOALS	STRATEGY	SPECIFIC OBJECTIVE	ACTIVITIES
1.	ENTREPRENEURSHIP:   To up – grade small holders enterprises activities for Youth and Women in Lindi urban & rural, Ruangwa and Nachingwea	Strengthen the method for widening of business structure for youth and Women.(enable self employment) 45 group	Establish and develop project which will increase entrepreneurship. 45 groups in 3 districts by 2019	To esteem capacity building on business enterprises to 15 group in lindi urban and 30 group for material and goods production in 2 districts.
				Give education to the group on various activities about entrepreneurship.
				Create awareness and prepare them to take in National Trade fairs.

 

Project period.

Five years 2014 – 2020

OBJECTIVE.

To strengthen capacities of community based organizations.

Area of coverage.

The project cover 3 districts ( Lindi urban and rural, Ruangwa, Nachingwea) will involve 3 phases. Phase one. The programe cover Lindi Urban & rural ( Mikumbi, Rasbura ( Mitwero, kariakoo), likongo, Ngongo, Mnazimmoja and Kineng’ene, ng’apa, mchinga, Rondo, Nyangao, mtama, mtua).

 

PROJECT OPERATION FOCUS.

PYPRI as a project has been given the following tasks to achieve its objective of strengthening capacities of poor communities – community based organization.

1. Rural/Remote outreach (reach remote and rural areas.)

 

1. Women and Youth ( to increase awareness of Women and Youth on using available resources in generating income and on how to raise credit from financial institutions)
2. Create sustainable community based operational System

i)                    Facilitate ownership by target community. (CBOs ownership.

ii)                  Establish sustainable rural credit system

iii)                Enhance business and livelihood growth

iv)                Initiate agriculture forum and based community for crop production for business in rural areas.

v)                  Establish community oriented record keeping tool.

vi)                Establish performance measurement standards for grass-root projects.

1. Strengthen community oriented decision-making process.

i)                    Increase community opportunities/creativeness

ii)                  Strengthen stakeholders dialogue

iii)                Increase cooperation, support and linkage

PRAGRAME COMPONENTS.

Advocacy: awareness raising, sensitization, behavior change, resource mobilization and lobbying for CBOs’ support.

Skills Training: Managerial, entrepreneurship and technical skills.

Credit/ Grant: Capital support for income generating activities. But not now due to lack of Fund per now.

SRENGTHENING PEOPLES’ OWNERSHIP AND DECISION – MAKING.

It is very difficult for Donor funded programmes to practically involve target beneficiaries in decision – making and ownership of projects. In most cases when project phase out it becomes the end of the progrmme and services.

Through participatory and partnership approach, project will manage to lay foundation for peoples’ ownership and decision – making.

CBOs shall have established their own Institutions – CBOs through their CBO’s Initiatives Fund because will brought and bought shares and participate in credit selection committees, credit supervision and repayment follow – ups. This will increase the morale of CBOs’ participation and involvement, also the use of CBO council system will reduce monitoring costs.

 

                               PROGRAM PERFORMANCE INDICTORS 2014 – 2019.

(TRACKING INFORMATION FOR MONITORING AND EVALUATION)

The way to manage and achieve CBO Initiative Fund.

 

S/N	ITEM	INDICTOR	VERIFYING TOOL	RELEVANCE OF INDICTOR	BENCHMARK/TARGET ( 2014 -2019 )
1.	Outreach	No. of disadvantaged rural district participating in the program me.	-          - Lindi map -          - Field visit -          - National poverty index report	Profile of target area.	Serve 3 Rural and remote district.
2.	Client selection	Ratio of Women to youth groups.	-          - Initiated CBO’s -          - Credit/fund contribution and No. Financial institution involve	Rationale of beneficiary status.	80% of CBO’s supported should be youth and Women activities.
3.	Grant Management.	No. of existing CBO’s/activities.	-          - Programme report -          - Beneficiary inventory.	Quality of grant portfolio.	Successful income generating activities. *80% of supported CBO’s activities continue to grow.
4.	Cost Effectiveness	Amount spends Vs result.	Financial statement	Budget Ratio	Within budget limit
5.	Linkages	Increase in No. of participating and supporting partners.	Review program me report.	Acceptability and cooperation.	Have more than one programme supporting and cooperating partner.
6.	Program me sustainability. -          Financial	Increase in No. of source of funds.	-          - Budget -          - Program me report -          - CBO’s project report. -	Other source of funds e.g. CBO’s initiatives funds/members contribution, etc.	*Both CBO’s and PYPRI have more than one source of funds. *CBO’s loan repayment rate is more than 80%. CBO’s income increase raised by 20% from the current.
7.	Organization/Managerial	Increase in output	-          - Programme returns -          - Beneficiary interview. -          CBO’s project reports. -          CBO’s record book.	Level of PYPRI and CBO’s management capabilities.	24 councils have well managed CBO’s/councils (average of 24 group per district)
8.	Institutional	No. established community owned institution ( CBO’s, AMCOS, SACCOS)	-          Programme reports. -          Beneficiary interview.	Level of community ownership CBO’s.	Community ownership CBO’s own by 80% through their contribution.

 

                            

GRANT AND CREDIT TYPE OF FINANCIAL SUPPORT OPERATIONS.

1. After through capacity need assessment of existing groups in the areas, selected groups will be advised to form a CBO council. CBO council should become an Institutional body at grass root level, which will be represented by two from each group (not more than 20 groups).
2. After the formation of the CBO council, the CBO is requested by the project to allow partnership arrangement, where by the project and Government representatives at local level also become members of the council – A memorandum of understanding for partnership arrangement is signed.
3. The CBO council is asked to facilitate the meeting of its members to decide on the amount of contribution (shares/savings) to enable CBO to own the system (council and credit system). After the decision of the council, then groups are given time repay – usually repayment are made on monthly instalment.
4. After a period of 6 month – Usually after 50% repayment of CBO’s contributions then the project will pays 75% of its commitment to the CBO council. Funds (Grant) are paid to the CBO Initiatives Fund which is a joint account meant for credit Operations only. The account shall be managed by the CBO’s council and the Project.
5. CBO council also runs another bank Account for Council operations.
6. After the establishment of the CBO Initiatives Fund, then credit operation starts to function two Months after comprehensive training by couching (Best management and credit practices.

 

Credit appraisal and processing will be done by the CBO council (Full council) with the assistance of the project Field staff using the standard established criteria (Already there is a CBO council and credit guideline which has been established by the CBO council).

 

 

 

 

CREATING SUSTAINABILITY SYSTEM FOR RURAL CREDIT MANAGEMENT.

To run a sustainable credit system in rural in succeeding to established a community owned system in 3 districts by establishing CBOs’ initiatives fund owned by CBO members through their CBOs’ council. In establishing the CBOs’ initiatives Fund. Project will contribute by giving grants to CBOs’ council. The CBOs’ council uses the grant received from the PYPRI project and members contributions (shares) to give credit to its members. Members who receive credits repay their loans with interest of 9%. The repayment is made to the CBOs Initiatives Fund. As part of capacity building, CBOs’ Initiatives Fund will currently managed on joint basis with technical assistance from Project Field Workers.

 

Project will so far disburse grants worth Tshs 45,000,000 = [(USD) 49284 to 45 CBO in 3 districts after project receive fundraised fund. The system will address sustainability in terms of Finance, managerial and Institutional capacity.

1. Financial capacity will address by CBOs’ contributions and credit
2. Managerial capacity will address by training CBOs’ members
3. Institutional capacity will address by CBOs’ ownership through the formulation of CBOs’ council and CBOs’ initiative Fund.

 

 

 

                                                                                                                                                                   

ACKNOWLEGMENT.      

The entire program could not have been successful without the support of OVGA staff, Regional Administrative Office, Ruangwa Executive District Officers, Lindi Rural officers and Lindi Municipal officers. We hand over thanks to our partners and collaborators for their assistance in achieving objectives (GIZ – TANZANIA, YUNA – TANZANIA, UN CLUB, DARECHA how keep us up dated, DSW – International Company for Consultancy, IFY- International for Youth.

We appreciate the efforts made by OVGA members, the entire OVGA secretariat headed by Director Alfred T. Fellecian, CHIDA Executive Director and project Coordinator Dady Mohamed, CHIDA/OVGA members, Committee, Regional coordinators, constituent monitoring and poll watchers who were in field feeding the secretariat with current and timely information on what was on the ground. They did this so diligently and with great passion and commitment. The information, data and reports produced and repackaged by them have made this document to be what it is.

Furthermore, thanks to Steven Scorer, Victor William for ICT assistance.

We hope this will be the beginning of an even closer working and collaborative relationship with the GIZ, YUNA and DSW. Additionally, it would be unfair if we fail to acknowledge the superb work done by consultants’ team led by Dr. Hellen Tarimo, Beatus Emannuel (Advocate) for legal adviser. Dr. Ntalima Mayaya for health project consultant, Syliveter Mgallah (Advocate) as OVGA member in the production of this report. We also acknowledge the support and assistance given to our ICT observer in the course of collecting data for the finalizing of this report.

Also we take this opportunity to thanks Stephen Scores from VSO - International Company for his help in project design and agree to be our volunteer.

We would like to acknowledge and extend our heartfelt gratitude to our Development partners (UN CLUB with Inoncent Mkota as project coordinator, YUNA with Ahmed Ramadhan National chairperson of YUNA and Mr. Abby Regional Health Manager, Joseph Matimbwi, Cecilia from GIZ – Tanzania, Peter Wogani, Dianna from DSW for Strategic and Financial re-novation) for their immense collaboration and support which facilitated the OVGA/CHIDA to coordinate and implement monitoring of 2014 some activities. To you all, we say thanks.